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Avalara Survey Finds Brexit is Costly, Complex, and Driving Down Profitability for UK Businesses
BRIGHTON, United Kingdom, Jan. 31, 2024 /PRNewswire/ -- Avalara, Inc., a leading provider of tax compliance automation software for businesses of all sizes, has today published new analysis exploring the impact of Brexit on businesses based in the United Kingdom (UK). The findings reveal that leaving the European Union (EU) generated additional costs for UK businesses, costing £96,281 on average since 2020. The survey also revealed that 73% of UK businesses report being less profitable in the wake of the decision. "Businesses in the UK are feeling the negative financial impact of Brexit on their bottom line. Thousands of businesses are reeling from the customs and tax obligations imposed on trade across Europe," commented Alex Baulf, Vice President of Global Indirect Tax and E-Invoicing at Avalara. "At a time when the UK economy needs to repair itself, encouraging business growth and expansion is key. Unlocking cross-border trade should be central to this." Businesses report disruptions post-Brexit Three-quarters (75%) of UK businesses saw their sales into the EU fall or become more complicated, driven by the increased complexity when trading with Europe. As a response, over two-thirds (68%) of businesses have explored trading into non-EU markets following Britain's exit. Businesses are actively expanding and investing into the US (45%), Canada (41%), New Zealand (27%) and China (26%). Overwhelmingly, 82% of British businesses would support the UK Government's efforts in improving trade across Europe. Business have turned to technology to navigate the post-Brexit landscape With only 18% of British businesses reporting no impact from Brexit, it is no surprise that three-quarters (74%) of business leaders believe Brexit created more stress for businesses. More businesses reported stress across the arts and culture (94%), healthcare (90%), and HR and education (both 88%) industries. Avalara provides an end-to-end platform to address cross-border tax compliance — from tariff code classifications to customs duty and import tax calculations and more. To learn more about how Avalara automates cross-border tax compliance requirements for businesses, visit avalara.com. About Avalara Methodology Logo - https://mma.prnewswire.com/media/2148367/Avalara_Logo_Tag_RGB_Logo.jpg View original content:https://www.prnewswire.co.uk/news-releases/avalara-survey-finds-brexit-is-costly-complex-and-driving-down-profitability-for-uk-businesses-302047516.html |